Aspects contributing to tourism price competitiveness of South Africa

Abstract

Although price has been indicated as strength for South Africa as a tourist destination, high price increases could change this perception over time. It was the aim of this study to determine the unique aspects of the tourism price competitiveness of South Africa as a destination. A total of 2727 structured questionnaire was emailed to tourism operators associated with South Africa as a tourist destination during 2013, of which 271 usable questionnaires were returned. The results indicate that 78% of the respondents regard South Africa to be competitive and 55% point out that a 5% price increase of tourism products and services is acceptable. Sixty-five percent indicated that price increase has a significant effect on the tourism sales. Fuel prices, inflation, exchange rate, electricity cost and labour costs were indicated as the aspects that exert the greatest influence on the competitiveness of South Africa as a destination.